Chipmaker AMD's revenue tops estimates, forecast misses
By Noel Randewich
(Reuters) - Chipmaker Advanced Micro Devices' quarterly revenue topped estimates but its forecast for the current quarter fell short as it struggles with falling PC sales and consumers' growing preferences for smartphones and tablets.
Like larger rival Intel, AMD is trying to refocus its business as sales of laptops languish and consumers increasingly depend on more mobile gadgets.
AMD's revenue forecast for the March quarter was gloomier than Intel's outlook last week.
In its report on Tuesday, AMD estimated revenue in the current first quarter would fall 9 percent from the fourth quarter, plus or minus 3 percentage points. The mid-point of AMD's revenue forecast is about $1.056 billion.
Last Thursday, Intel said revenue for its March quarter would fall about 6 percent from the prior quarter and disappointed Wall Street with a sharp increase in capital spending.
"They (AMD) guided down 9 percent at midpoint, compared to Intel down 6 percent. That really reflects a weaker competitive position out there," said Evercore Partners analyst Patrick Wang.
Microsoft Corp's long-awaited launch of Windows 8 in October brought touch screen features to laptops but failed to spark a resurgence in sales that AMD, Intel and many PC manufacturers had hoped for.
AMD posted fourth-quarter revenue of $1.16 billion, compared to $1.69 billion in the year-ago quarter. Continued...